Dynamic Power Purchase Agreement

This paper deals with the problem of defining the Power Purchase Agreement (PPA) that enables power exchange between two or multiple parties. Generally, PPA is a longterm contract with predefined price and power profiles. Energy reliability risk needs to be properly considered to make PPA more attractive to a potentially interested party. That is the reason, why we decided to propose the concept of a so-called dynamical power purchase agreement. The method provides short-term contracts where parameters can change as often as needed. Dynamical PPA should allow each party to selfishly minimize its cost or maximize its revenue while producing a consensus solution. The dynamic PPA is formulated as a model predictive control optimization problem in a multi-objective fashion, solved by the Pareto front and method of global criterion. Results show the potential of such an agreement to react to the power market conditions and still satisfy the needs of each involved party.